Small-Cap Chemical Stock Zooms Over 9% on Production Starting At New Facility

  • Stock Market News
Small-Cap Chemical Stock Zooms Over 9% on Production Starting At New Facility

By Malvika Gurung -- Shares of the speciality chemicals manufacturer Chemcon Speciality Chemicals (NS: CHEO ) were trading 9.4% higher at Rs 456 apiece during late market hours and ended 8.4% higher at Rs 451.8 apiece on Thursday. The stock zoomed past 11% in the session.

The chemical company’s stock rallied after it announced the commencement of operations at its new facility in Manjusar, Gujarat.

Chemcon Speciality informed the beginning of commercial production at the P9 plant in Manjusar in an exchange filing. The company has added a capacity of 2,400 MTPA of Bromo Benzene at this unit and is considering the addition of a pharma chemical, Guanine there.

“Product innovation has been the cornerstone of our company's success, and we are currently examining further possibilities to add new product Guanine at the same P9 unit. We are seeking final clearances from local authorities and will notify you soon as we have them,” said the company’s Chairman and MD, Kamal Aggarwal.

The small-cap company has commissioned a solar power unit in Dabhoi, Vadodara by investing Rs 10 crore. The facility will be used to reduce the company’s reliance on nonrenewable energy sources.

The company further said that the new capacity expansion will make the company well-positioned to capitalize on future opportunities.

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